Then they initiated consumer collaboration and asked the consumers where they should be able to deliver next. The consumer collaboration increased the stakeholder engagement of the company. For the consumers they made changes to meet their needs. They provided free samples and also worked with the local retailers and distributor to continue the operation. The company listened to the needs and issues of the customers. The morning delivery drivers were instructed to drive slowly in the morning and turning of the sounds to reduce the noise complaints. The packaging of the product was done to ensure that there is minimal environmental impact. The customers were notified of the delivery of the products to discourage any possible theft.
Another issue that the online grocery companies face is the quality of the produce and the value for money issue. The company was able to ask the consumers to look into the huge selectin of service and provide a wider collection. They had provided free samples to gain good brand image. Similar strategy can be used in Australian markets to increase the value proposition. To conclude, the online grocery companies should focus on service delivery, competitive pricing, huge selection and ensure that they listen to the consumer feedback to make changes in their business model. Online grocery business faces more challenges when compared to the brick and mortar stores. Brick and mortar stores has more advantages when compared to the online stores in the business of groceries.
They had to face additional service marketing efforts to keep the consumers satisfied. The customers feel that they could not sample or feel the produce. Customers feel a sense of apprehension when they could not feel the sample and hence did not want to use the grocery service. Other e-commerce ventures depend on the courier services such as Fed ex to ship their products. But online grocers needed to have their own supply chain and redistribution center. Also they had long wait times for the customer to get hold of the products. In the past companies such as Webvan expanded and was not able to cater towards the needs of the consumers. The failure of past ventures had made people apprehensive of the efforts of the online grocery stories. Past failure, gaps in service delivery, quality concerns were the reasons that the people do not want to try out the e-commerce.